Let’s say you were recently in an accident and have received a call from the other driver’s insurance company. Do you have to talk to them?
The short answer? No. Whether or not you were at fault, you have no legal obligation to speak to the other driver’s insurance company, and in many instances, legal experts would advise against it. Especially if the accident was serious, it’s best to consult with a personal injury attorney and let them deal with the other company on your behalf.
The main reason for this is that the other insurance company isn’t looking out for your best interests; their main priorities lie with reducing the amount of money they have to pay out and protecting the interests of their clients. There are two ways they do this. The first is to deny the maximum number of collision claims outright, and the second is to negotiate the lowest possible settlement on accident claims. Essentially, to reduce the claims they pay, the company needs to deny claims that are made.
Since most drivers aren’t adjusters or attorneys, the insurance companies have an advantage. They know the claims process inside and out and can use this knowledge against you.
It can be risky to talk to the other driver’s insurance company
By talking to the other driver’s insurance company, you could be unknowingly hurting your own case. Whether or not the accident was your fault, the insurance company will likely use any information you provide to reduce or deny your claim.
Even though you’re not legally required to cooperate with them, that rarely stops insurance companies from trying to contact you. If they do, the best course of action is to not take the call and then talk to an attorney or adjuster from your insurance company. If you do talk to anyone from the other company about the accident, take notes about the details of your conversation. The adjuster will likely ask if they can record you, either over the phone or by providing a written statement; often they’ll say something like, “It will speed up the claims process.”
However, a recorded statement could be damaging to your case. It could show you don’t have a valid claim, or it could minimize damages or injuries that are later found to be more severe than you initially thought.
A recorded statement can easily be used to undermine a legitimate accident claim. For example, the insurance adjuster may compare the statement you gave them with the one you provided the police, along with the statement you’d make if the case involves a lawsuit. If they find inconsistencies between any of the statements, the claim may be denied. Inconsistencies can be innocent – it’s not uncommon for small details to change slightly when someone tells the story over four or five times over a period of several months.
Additionally, adjusters have methods of asking questions that can encourage you to answer in a way that hurts your claim. Some adjusters may be particularly aggressive and try to push you into agreeing with inaccurate facts. If you agree for the sake of getting them to leave you alone, this could hurt your case.
Another thing to consider is that if you go to court over the accident, the other driver’s defense team could use your recorded statement to the insurance company to cross-examine you. Depending on how long ago the statement was made, it can be difficult to remember the details, which could cause you to make damaging contradictory statements.
To be fair, not all insurance companies will do this! However, it’s important to understand that it’s a possibility, and if they do try to undermine your case, it could hurt your claim.
Medical Considerations
Another important thing to consider is that depending on the severity of the accident, you may not have a complete medical diagnosis yet. This means you could unintentionally misrepresent your injuries.
This is why insurance adjusters are well known for trying to contact injured parties as soon as possible; they want to have an idea of the “reserve value” or what the case is likely to be worth. Once they’ve set a reserve value, it can be very difficult to get a settlement above that amount. Without an attorney present, you may give the adjuster an artificially low reserve amount, which increases the chances that a lawsuit would need to be filed to receive a higher settlement. This means may you have to wait months to get paid, if at all.
When is it okay to talk to the other driver’s insurance company?
Although you should avoid talking to the other driver’s insurance in most cases, there are times when it can be okay to talk to them.
If you were in a minor accident and the other driver was 100% at fault, and all the details support this, talking to the insurance company may help your claim be settled faster. One example would be if the police report clearly states the other driver caused the collision. If the other driver was also cited by the police, this will help your case even more.
However, if your accident involves any of the following, it’s recommended you work with a personal injury attorney:
- Broken bones, hospital stays, or long-term health consequences
- Medical treatments over $2000
- Missing more than 1-2 days’ worth of work, school, or other normal activities
- Several people were injured in the collision
- The insurance company is playing hardball
Regardless of who was at fault or whether you choose to talk to the other insurance company, you are contractually obligated to speak with your own insurance and cooperate with them. Your insurance company may require you to provide a recorded statement, as well. If they do, just be sure to ask the adjuster to tell you the exact language in the contract that requires it.
Keep in mind that your own insurance company can potentially take a position against you, so you should be careful – and as accurate as possible – when providing information for a recorded statement. Many experts advise against providing a recorded statement to any insurance company, even your own, without legal counsel.
At European Collision Center, we understand insurance can get tricky. That’s why we provide complete insurance coordination for your repairs. Once you have a claim number from your insurance company, we’ll work with them directly to ensure your repairs go smoothly. Contact us to schedule your appointment at (415) 551-9700 or fill out our online form.